Punjab Seeks Rs. 150 Billion PSDP Funds for Road Construction
The Punjab government has sought Rs. 150 billion under the Public Sector Development Program (PSDP) for road infrastructure projects, provincial officials informed the Senate Planning Committee on Friday.
However, the Ministry of Finance officials informed the committee that they have not yet received any details of the allocation of these funds for Q3 2024-25.
The Planning Secretary briefed that the planning minister had recently approved PSDP allocations. Their details will be sent to the Finance Ministry within a day or two. The committee chairman emphasized that new PSDP projects should be banned to manage the growing backlog of incomplete or ‘throw-forward’ projects.
Planning officials reported that 170 new projects were included in the current fiscal year’s development program, but only 25 have been granted a No Objection Certificate (NOC) so far. The committee directed the Punjab government to ensure its share of PSDP funding is included in project proposals.
Overall, concerns were raised over the slow utilization of allocated funds. Planning Ministry officials reported that less than the allocated budget has been spent in the current fiscal year. Ministries like the Board of Investment and the Ministry of Climate Change, utilized just 7 percent and 12 percent of their funds, respectively, in the past six months while the ministries of Narcotics Control and Religious Affairs have yet to spend any of their allocated funds.
The committee instructed all ministries to submit reports on their development spending and urged the Planning Minister to provide a briefing on the Uraan Pakistan initiative.